The US Environmental Protection Agency announced on Monday that it is repealing the carbon emission limits for coal- and gas-fired power plants put in place under the Biden administration. The agency also proposed to rescind all remaining greenhouse gas requirements for the power sector, arguing it lacks authority under the Clean Air Act to regulate GHG emissions. The move is part of a broader push to unwind federal climate policy and boost fossil fuel generation, with the power sector responsible for nearly a quarter of US greenhouse gas pollution. The repeal removes the requirement for carbon capture and storage on new gas plants and existing coal units, a rule that would have cut emissions by 1 billion metric tons by 2047. EPA Administrator Lee Zeldin claims the change will save industry $370 million in direct compliance costs, while environmental groups point to billions in potential health and environmental damages. Utilities still face state-level emission rules, and the decision is likely to face legal challenges. For carbon markets and renewable project finance, the shift signals weaker federal support for decarbonization, but state and regional programs remain intact.
